It is clearer that tariffs will drive a new global inflation surge

Economy Watch · Feb 10, 2025 · 4m

Kia ora,

Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.

I'm David Chaston and this is the international edition from Interest.co.nz.

And today we lead with news of more signaled tariffs on imports into the US, specifically on metals. A new inflation surge seems inevitable, as does less trade and low growth - in other words we need to prepare for a new bout of stagflation.

But first, American consumer inflation expectations for the year ahead remained at 3% for a third consecutive month in January, according to the NY Fed…